Alcogal, a leading energy law firm in Panama, represented Gas Natural Atlantico and Costa Norte LNG Terminal in the financing of the first liquefied natural gas project in Panama.
Leading energy law firm in panama
Alcogal recently represented Gas Natural Atlantico, S. de R.L. and Costa Norte LNG Terminal S. de R.L., as borrowers, in an approximately US$600 million financing for the construction and development of an LNG (liquefied natural gas) power block and LNG terminal in Panama, which will be located in the province of Colon.
Partner Arturo Gerbaud, along with associates Rita de la Guardia and Rafael Marquínez, were in charge of this transaction.
First LNG import facility in Panama
The Costa Norte liquefied natural gas (LNG) regasification terminal is being constructed by AES Colon and Inversiones Bahía in Colon, Panama.
It is set to be the first LNG import facility in Panama and will be located at the Caribbean entrance of the Panama Canal at Colon, approximately 60km north of Panama City.
The LNG terminal will have a capacity of 1.5 million tonnes (Mt) a year and forms part of an integrated facility featuring a 380MW natural gas-fired thermal power plant.
The project is being developed via an estimated investment of US$1.15 billion .
Development of the terminal
AES subsidiary Costa Norte LNG Terminal (CONO) is responsible for the development of the terminal, while Gas Natural del Atlántico (GANA) is responsible for the construction of the thermal power plant.
A ground-breaking ceremony was conducted for the project in May 2016, while operations are expected to begin in May 2018.
The initiative is expected to create approximately 2,000 direct jobs during construction and a further 200 direct and indirect jobs during the operational phase.
The regasification facility will include a jetty and pipeline for transferring the LNG from tankers to the storage tank. The power plant will be the regasification terminal anchor client, absorbing around 25% of the total terminal capacity.
The project has secured an LNG contract from an international supplier who will provide LNG to the project with full-size tankers (~155.000 m3). The liquid gas will be stored in a tank and, through a physical process, converted to a gas state for use in the power plant. The Project will include three 10-year fuel supply agreements.
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